Amazon Inventory Management

Dave Altshul

24 Apr 201602:17

Summary

TLDRThe Phoenix Arizona fulfillment center, spanning 1.2 million square feet, operates with a 'random stow' system to efficiently stock over 15 million items. With 2,000 employees and Kiva robots capable of lifting up to 3,000 pounds, Amazon optimizes picking with handheld scanners and algorithms. Products travel via conveyor belts to the 'slam' line, which checks weights and labels packages. The process culminates in a Tetris-like packing challenge, ensuring space-efficient shipping.

Takeaways

🏭 The fulfillment center in Phoenix, Arizona is massive, spanning 1.2 million square feet, equivalent to 28 football fields.
📦 Over 15 million items are stocked daily in this facility, with a seemingly chaotic arrangement of consumer goods.
🔄 The storage process is called 'random stow,' where items are placed randomly, not necessarily next to the same items.
👥 There are over 2,000 full-time employees who use handheld technology scanners to retrieve products and are directed to the most optimal next item to pick.
🤖 Amazon's Kiva robots are incredibly strong, able to lift up to 750 pounds and up to 3,000 pounds for larger items.
🔵 Products are transported in yellow boxes called 'totes' along eight miles of conveyor belts.
🏷️ An advanced technology called the 'slam line' (shipping labeling and manifesting) checks the weight of items to ensure they match the expected weight before shipping.
🚫 If an item's weight is off, the slam line diverts it for an associate to verify and correct the order.
📦 Packages are then sent down metal chutes sorted by shipping preference, leading to a packing challenge akin to a game of Tetris, where workers pack items efficiently without wasting space.
🌐 The fulfillment center's operations highlight Amazon's use of advanced technology and human labor to optimize the process of order fulfillment and shipping.

Q & A

What is the size of the fulfillment center in Phoenix, Arizona mentioned in the script?
-The fulfillment center in Phoenix, Arizona is 1.2 million square feet, which is equivalent to the size of 28 football fields.
How many items are stocked in the Phoenix fulfillment center on a daily basis?
-Over 15 million items are stocked in the facility every day.
What is the process called that is used to store items in the fulfillment center?
-The process is called 'random storage', where items are placed in available spaces without necessarily being next to the same item.
What is the role of handheld technology scanners in the fulfillment center?
-Handheld technology scanners alert associates where to retrieve the product in the fulfillment center.
How does the algorithm in the fulfillment center assist employees in picking items?
-The algorithm directs employees to the most optimal next item to be picked, improving efficiency.
What are Amazon's busiest employees in the fulfillment center, and what is their strength equivalent to?
-Amazon's busiest employees are the Kiva robots, whose strength is equivalent to an NFL linebacker.
What is the maximum weight that Kiva robots in the fulfillment center can lift?
-Kiva robots can lift up to 750 pounds, and in centers handling larger items, they can lift up to 3,000 pounds.
What are the yellow boxes used for transporting products within the fulfillment center called?
-The yellow boxes used for transporting products are called 'totes'.
What is the purpose of the 'slam line' in the fulfillment center?
-The 'slam line', which stands for shipping labeling and manifesting, checks the weight of the products to ensure the correct item is being shipped.
How does the slam line detect if the wrong item is being shipped?
-The slam line detects incorrect items by comparing the actual weight of the product to the expected weight in the computer system, and if there is a discrepancy, it sets the item aside for review.
What game is the script likening the packing process of the fulfillment center to?
-The packing process is likened to a game of Tetris, where workers have to pack items tightly together without wasting space.

Outlines

00:00

🏭 Inside Amazon's Massive Fulfillment Center

This paragraph takes us inside a colossal 1.2 million square foot Amazon fulfillment center in Phoenix, Arizona, which is equivalent in size to 28 football fields. The center stocks over 15 million items daily, using a 'random storage' system that positions items based on space availability rather than category. Amazon spokesperson Ashley Robinson explains the method behind the seeming madness, emphasizing the efficiency of the process. The script also introduces us to the facility's 2,000 full-time employees and the Kiva robots, which are capable of lifting heavy weights and contribute significantly to the operation's efficiency.

🤖 Amazon's Kiva Robots and High-Tech Systems

The script highlights the impressive capabilities of Amazon's Kiva robots, which are strong enough to rival an NFL linebacker, weighing over 300 pounds and able to lift up to 750 pounds, or even 3,000 pounds for larger items. These robots play a crucial role in moving products in yellow totes along eight miles of conveyor belts. The narrative then shifts to the 'slam line' technology, which stands for shipping labeling and manifesting. This system checks the weight of items against the computer system's expectations, ensuring the correct item is shipped. If a discrepancy is detected, the item is set aside for an associate to address.

📦 The Final Stages of Amazon's Shipping Process

The final paragraph of the script describes the shipping process at the fulfillment center. After items pass through the slam line, they are pushed down metal chutes categorized by shipping preference. Workers then engage in a Tetris-like challenge, packing items tightly to optimize space and ensure efficient shipping. This step underscores the attention to detail and efficiency that Amazon employs to deliver packages to customers' doors.

Mindmap

Keywords

💡Fulfillment Center

A fulfillment center is a large warehouse where products are stored, processed, and shipped to customers. In the context of the video, the fulfillment center in Phoenix, Arizona, is massive, covering 1.2 million square feet, which is equivalent to the size of 28 football fields. It serves as a central hub for Amazon's operations, stocking over 15 million items daily and employing a variety of technologies and systems to manage the inventory and shipping process.

💡Random Storage

Random storage, also known as 'random bin storage', is a method of storing items in a warehouse where the location of each item is not necessarily next to the same type of item. This system is used by Amazon to optimize space and efficiency. As mentioned in the script, associates look for places where a particular item will fit, regardless of its proximity to identical items, which contributes to the seemingly chaotic yet methodical arrangement of the fulfillment center.

💡Associates

Associates in the context of the video refer to the full-time employees working at the fulfillment center. They are responsible for various tasks such as retrieving products, operating technologies, and ensuring the smooth operation of the facility. With over 2,000 full-time associates, they play a crucial role in the center's ability to process and ship millions of items daily.

💡Technology Scanners

Technology scanners are handheld devices used by associates to locate and retrieve products within the fulfillment center. When an online shopper makes a purchase, these scanners alert the associates to the product's location and guide them through the process of picking the item. The script mentions that these scanners use algorithms to direct employees to the most optimal next item to be picked, streamlining the workflow.

💡Kiva Robots

Kiva robots, as described in the script, are automated machines used in Amazon's fulfillment centers to move items. They have the strength equivalent to an NFL linebacker, weighing over 300 pounds and capable of lifting up to 750 pounds. In centers that handle larger items, these robots can lift up to 3,000 pounds. The robots contribute significantly to the efficiency of the warehouse operations by transporting products in yellow boxes called totes along the conveyor belts.

💡Totes

Totes are yellow boxes used to transport products within the fulfillment center. They are carried by Kiva robots along the conveyor belts, moving items from one point to another in the warehouse. The script illustrates the use of totes when it describes the Kiva robots moving these boxes, which are an integral part of the logistics system within the fulfillment center.

💡Conveyor Belts

Conveyor belts are a system of moving pathways that transport items within the fulfillment center. The script mentions that there are eight miles of conveyor belts in the Phoenix facility, which carry the totes filled with products to various stations. This system is crucial for the efficient movement of items from storage to shipping.

💡Slam Line

The 'Slam Line' is a piece of technology used in the fulfillment center for shipping, labeling, and manifesting. It stands for 'Shipping, Labeling, and Manifesting'. The script explains that this technology already knows the weight of the product before it ships and can detect discrepancies, such as a book not weighing as much as it should, ensuring that the correct item is sent out.

💡Manifesting

Manifesting in the context of the video refers to the process of creating a list or record of the items being shipped. It is part of the 'Slam Line' technology, which checks the weight of the products and ensures that they match the expected weight in the computer system. This process helps in maintaining accuracy and accountability in the shipping of products.

💡Tetris

In the script, 'Tetris' is used metaphorically to describe the challenge faced by workers when packing items into boxes. The term is borrowed from the popular puzzle video game where players must fit different shaped blocks into a limited space. In the fulfillment center, workers must efficiently pack items tightly together to maximize space utilization and minimize shipping costs.

💡Shipping Preference

Shipping preference refers to the different methods or options available for delivering products to customers. In the fulfillment center, boxes are pushed down metal chutes that are separated according to these preferences. This allows for the sorting and organization of packages based on factors such as delivery speed, cost, or carrier, ensuring that each package is shipped according to the customer's or the company's requirements.

Highlights

The fulfillment center in Phoenix, Arizona is a massive 1.2 million square foot facility, the size of 28 football fields.

Over 15 million items are stocked daily in this huge facility.

Amazon uses a process called 'random storage' to organize items in the warehouse.

Items are stored randomly, not necessarily next to the same item, for optimal space utilization.

2,000 full-time employees work at this fulfillment center to handle the high volume of orders.

Handheld technology scanners guide associates to retrieve products efficiently.

Algorithms direct employees to the most optimal next item to be picked.

Amazon's Kiva robots are strong, weighing over 300 pounds and lifting up to 750 pounds.

In larger item fulfillment centers, Kiva robots can lift up to 3,000 pounds.

Products travel in yellow boxes called 'totes' along 8 miles of conveyor belts.

The 'slam line' technology checks the weight of products before shipping to ensure accuracy.

If a product's weight doesn't match the system's record, it is set aside for review.

Packages are shipped out after being pushed down metal chutes separated by shipping preference.

Workers pack items tightly together in boxes, playing a game of Tetris to optimize space.

The fulfillment center demonstrates Amazon's innovative approach to warehouse management and efficiency.

High-tech systems and robots work alongside human employees to optimize the picking and shipping process.

The facility's size and operation showcase the scale of Amazon's e-commerce operations.